“The gain or loss is only real when you sell.”
“If my money isn’t working for me, its like I’m paying an employee to look at the wall all day long.”
“You hit buy and all of a sudden a clock shows up and you’re like what the fuck is going on!? Is my phone gonna explode!?”
“Keep your eyes open but don’t stare.”
- Welcome Back: 00:30
- Investing As A Whole: 1:30
- The Bitcoin Frenzy: 9:00
- Short Term vs Long Term Investing: 12:45
- Bitcoin is Different From Stocks: 19:30
- Emotional Attachment To Investments: 27:00
- Closing Remarks: 31:00
Bitcoin is re-opening the idea of putting your money to work for you. Anyone who creates wealth needs to have their money work for them. We all work hard to make money but what we truly need to understand is that once you make it, it can go to work for you like an employee. When you invest in something volatile like bitcoin, you have to pretty much write that off. You have to be able to say, regarding the money you invested, I don’t need that. So if you wind up losing most or all of it, it doesn’t affect your life. You always want to protect your money and there is no right or wrong answer to how to invest YOUR money. The key to being successful in business and investing decisions is to be decisive and COMMIT to the choice you made. It should be a decision that if everything goes wrong, you are still operational. Never invest to a point where if it doesn’t go well, it can cripple you. Pay attention to the trends but do not stare at the price of your investments every day because that will drive you insane. Rather, look at serious shifts in the investment where you understand why it is occurring. People who succeed in investments do not play with scared money. Trading currency and trading stock is like trading baseball cards. Why does the price go up? Because the people who have it, don’t want to sell.
What everyone needs to realize is that the stock going down or up does not affect your wealth until you sell. The gain or loss is not realized until you liquidate the investment. When companies IPO typically the stock goes up so if you want to play the short game then cash in then and sell quickly. Other times investments can sit for years waiting to be liquidated. Only play this game with investments you believe strongly in.
People feel secure when they see their bank accounts go up. This needs to change. We have to get less comfortable with money sitting in the bank and more comfortable with putting the money to work. Money sitting in the bank is like paying an employee to sit and look at the wall all day. When John invests in something like bitcoin and if it were to drop to half the value, his reaction would be well… I knew what I was getting into. If it were to sky rocket to 100,000 he wouldn’t profess how wise he is for investing. He understands that nothing in life is a sure shot and would have the same emotional reaction.
Bitcoin is not a stock. There is nothing limiting bitcoin or preventing it from reaching a million dollars per coin. When investing in companies like Google, the growth of the investment is contingent upon the continued innovation of Google. Bitcoin is not contingent of a company. It is contingent on the global understanding of this currency and the retailers who may or may not begin to accept it. When people understand the value, the price goes up.
Be prepared to own your decision and be firm in your decisions in investing but not so rigid that you ignore blatant signs telling you to get out now. Keep your eyes open but do not stare. If your money is in the market and things are going down, hold on because no one knows when the bottom is coming. No one knows when the crash will occur but when it does, it will come back up. Then when it comes back it always goes up more than where it started. If you are on the sideline when the crash happens, buy. Its like the stock market is on sale and no one knows it. Next time you see a crash, then you can go ALL IN.
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